If your ledger shows a debit for five trading days in a row, your account is put in Square Off Mode as per SEBI rules.
In this mode you can close open positions and sell settled holdings. Placing any new orders is stopped until the debit is cleared.
Below is when it starts, what you can do, and how to get full access again.
Important:
- No new buy or sell orders are allowed while your account is in Square Off Mode.
- If Square Off Mode continues, the RMS team may unpledge and sell your holdings to clear the debit, after sending you an intimation with the timeline.
What Is Square Off Mode
- It applies when the ledger shows a cash debit for five straight trading days.
While in this mode:
- Allowed: Close existing positions and sell settled demat holdings.
- Stopped: Placing any new orders. This includes MTF.
When It Starts
- The count is based on the Beginning of Day ledger and runs across consecutive trading days.
- Square Off Mode starts on the fifth trading day at market open.
- Weekends and market holidays do not count.
Example: You trade on 01 Dec. Any debit posts on 02 Dec (T+1). Counting only trading days, the five BOD debits are 02, 03, 04, 05, and 06 Dec.
From the start of trading on 06 Dec, the account is in Square Off Mode. This assumes there is no weekend or holiday in between.
How to Get Full Access Back
- Clear the full debit by adding funds from your mapped bank account. or
- Reduce the debit by closing positions or selling settled holdings to create credit.
- Placing new orders is enabled again when the BOD shows zero debit and checks pass.
Same day trading after clearing debit: If you add funds and clear the debit and want to trade the
same day,
please
contact our support team to enable placing new orders that day.
If you do not contact support, placing new orders is enabled automatically on the
next trading day after routine checks.
Timing note: Enabling full trading depends on payment settlement and ledger update cycles. UPI and IMPS are usually faster than NEFT and RTGS.
Always check your ledger after adding funds. For steps to add funds, see this article.
Notes
- Part payment does not stop the counter. The counter stops only when your BOD ledger shows zero debit.
- Pledged stock margins do not clear a cash debit. The debit ends only when cash is credited, when you close positions, or by selling existing holdings after they are settled.
- Recommendation: Keep about 50% cash balance to meet MTM needs and avoid a cash debit.
What If
| Scenario | What to do |
|---|
| I added funds but still cannot place new orders | Wait for the ledger to show zero debit and checks to pass. For the same day, contact support with payment details. Otherwise it enables automatically on the next trading day. |
| There was a market holiday in between | Holidays and weekends are not counted. The five day count continues on the next trading day. |
| My ledger moved to credit and later back to debit | The count resets when BOD shows zero debit. A new five day window starts if a new debit continues. |
| My sell order failed in Square Off Mode | Make sure you are closing an open position or selling settled holdings. |
| Will any charges apply during the debit period | Debit interest or other charges may apply as per the brokerage schedule until the debit ends. |
| I want help to clear the debit or check my ledger | Go to contact us and share your Client ID with a recent ledger statement. |
Last updated: 05 Dec 2025